Arcos Dorados Holdings Inc (NYSE: ARCO) has a price-to-earnings ratio that is above its average at 11.63x. The stock has a 36-month beta value of 0.69. Opinions on the stock are mixed, with 3 analysts rating it as a “buy,” 4 as “overweight,” 1 as “hold,” and 0 as “sell.”
The public float for ARCO is 121.18M, and at present, short sellers hold a 1.17% of that float. On March 28, 2025, the average trading volume of ARCO was 1.36M shares.
ARCO) stock’s latest price update
Arcos Dorados Holdings Inc (NYSE: ARCO) has experienced a decline in its stock price by -2.24 compared to its previous closing price of 8.25. However, the company has seen a fall of -1.41% in its stock price over the last five trading days. seekingalpha.com reported 2025-03-18 that Arcos Dorados’ 4Q24 revenue declined due to FX headwinds, but comparable sales rose 1.7x inflation, indicating healthy demand despite macroeconomic challenges. Margins remain weak despite revenue growth, with EBITDA margin expanding only 40bps, highlighting high reinvestment needs and rising costs. The new Master Franchise Agreement with McDonald’s lacks transparency, with key details on marketing and CAPEX requirements still undisclosed.
ARCO’s Market Performance
Arcos Dorados Holdings Inc (ARCO) has experienced a -1.41% fall in stock performance for the past week, with a 1.32% rise in the past month, and a 8.26% rise in the past quarter. The volatility ratio for the week is 2.27%, and the volatility levels for the past 30 days are at 3.58% for ARCO. The simple moving average for the last 20 days is 0.25% for ARCO’s stock, with a simple moving average of -5.99% for the last 200 days.
Analysts’ Opinion of ARCO
Many brokerage firms have already submitted their reports for ARCO stocks, with Jefferies repeating the rating for ARCO by listing it as a “Buy.” The predicted price for ARCO in the upcoming period, according to Jefferies is $15 based on the research report published on December 01, 2023 of the previous year 2023.
Barclays, on the other hand, stated in their research note that they expect to see ARCO reach a price target of $9. The rating they have provided for ARCO stocks is “Overweight” according to the report published on September 27th, 2022.
HSBC Securities gave a rating of “Hold” to ARCO, setting the target price at $8 in the report published on April 04th of the previous year.
ARCO Trading at 1.53% from the 50-Day Moving Average
After a stumble in the market that brought ARCO to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -29.81% of loss for the given period.
Volatility was left at 3.58%, however, over the last 30 days, the volatility rate increased by 2.27%, as shares surge +4.90% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +7.14% upper at present.
During the last 5 trading sessions, ARCO fell by -1.89%, which changed the moving average for the period of 200-days by -12.30% in comparison to the 20-day moving average, which settled at $8.04. In addition, Arcos Dorados Holdings Inc saw 10.78% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at ARCO starting from Rabach Marcelo, who proposed sale 100,000 shares at the price of $8.34 back on Mar 17 ’25. After this action, Rabach Marcelo now owns shares of Arcos Dorados Holdings Inc, valued at $834,000 using the latest closing price.
BASTIDAS SALDARRIAGA JUAN DAVI, the Officer of Arcos Dorados Holdings Inc, proposed sale 7,889 shares at $8.15 during a trade that took place back on Nov 27 ’24, which means that BASTIDAS SALDARRIAGA JUAN DAVI is holding shares at $64,274 based on the most recent closing price.
Stock Fundamentals for ARCO
Current profitability levels for the company are sitting at:
- 0.07 for the present operating margin
- 0.13 for the gross margin
The net margin for Arcos Dorados Holdings Inc stands at 0.03. The total capital return value is set at 0.15. Equity return is now at value 29.07, with 5.03 for asset returns.
Based on Arcos Dorados Holdings Inc (ARCO), the company’s capital structure generated 0.77 points at debt to capital in total, while cash flow to debt ratio is standing at 0.18. The debt to equity ratio resting at 3.39. The interest coverage ratio of the stock is 8.24.
Currently, EBITDA for the company is 502.88 million with net debt to EBITDA at 3.3. When we switch over and look at the enterprise to sales, we see a ratio of 0.73. The receivables turnover for the company is 37.7for trailing twelve months and the total asset turnover is 1.55. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.61.
Conclusion
To sum up, Arcos Dorados Holdings Inc (ARCO) has seen a mixed performance recently. Analysts have differing views on the stock, with some seeing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
